Red Lion Community Pub Limited Business Plan
An opportunity to invest in a Red Lion Community Pub in the Wiltshire Village of Baydon
Page 1 of 22 Contents Page
Executive Summary 3
Introduction 4
Context and Setting 5 Baydon Red Lion Public House
Red Lion Operational Assumptions 6 Profit & Loss Projections Turnover Targets
Purchase Price and Fit-Out Assumptions 8
Staffing 8
Drinks Strategy 9
Food Strategy 9
Bed and Breakfast 10
Other sources of income 11
Branding 12
Marketing 12 Competition Objectives Target Markets Marcom SWOT Analysis
Conclusion ……….17
Contacts ……….17
Appendix ……….18 Marketing Profit and Loss
Page 2 of 22 Executive Summary
The Red Lion Public House has been in operation since 1715. It is currently a free house and has been for sale for more than 12 months as a going concern. If the Red Lion is closed, or a suitable community ownership program cannot be achieved, the most probable result would be a planning application for a change of use resulting in the loss of one of the most important village focal points. Once converted into a residential unit, the pub would be lost forever and the identity of Baydon would become another faceless community in the rural landscape. Many of our community associations and societies would suffer and it may start a gradual crumbling of the community spirit and identity within our Parish of Baydon.
Not wishing to see this vital community resource lost forever, a dedicated community group, the Save Baydon Lion Team was formed in February 2017. The Team together with Baydon Parish Council has ensured that The Red Lion has been registered, with the full backing of the Baydon Parish Council, as an Asset of community Value to continue as a public house. The Team has formed the Red Lion Community Pub Ltd (RLCP) which has been registered as a potential bidder to purchase the freehold.
The vision of the RLCP is simple:
To reinstate the Red Lion as the Baydon Lion, a homely, welcoming and traditional country pub to be run by the RLCP for the benefit of the community and the enjoyment of all.
To facilitate the purchase, the RLCP is seeking to raise the necessary funds through a share issue.
To run a successful business, RLCP understands that the business operations need to be founded on a realistic and achievable business plan. This business plan has been prepared on the premise that the RLCP will secure an experienced manager to run the pub once it re-opens.
In summary, the key elements of the business are:
A total capital budget of £300,000 is required to cover the purchase of the pub, which will enable the purchase of stock and remedial repairs as identified from Community feedback. A target revenue of just over £2,704 per week (£140,592 pa) is anticipated for the operation in first year, rising to £3,492 per week (£181,581 pa) in year three. The pub is to be run by an experienced manager employed by the RLCP, with a quality chef, up to 2 trained casual bar staff and a kitchen porter also to be employed The Red Lion is projected to deliver a cumulative bank balance of over £100,000 by the end of year three.
Page 3 of 22 Introduction
The following document outlines the business, marketing and financial plan associated with the reinstatement of the Red Lion as the Baydon Lion under community ownership. The plan seeks to:
Identify operational matters in terms of management structure, operational days and hours, staffing requirements, and the different supplies and materials required. Stipulate the target markets and how these are to be attracted to the pub. Identify the 12-month profit and loss and cash flow forecast over a 3-year period. Stipulate the capital investment requirements and sources. Identify the preferred sources of funding.
The Save Baydon Lion Team has set up a limited company established with the sole purpose of managing the Baydon Lion Public House in Baydon. It is called The Red Lion Community Pub Ltd (RLCP).
The interim directors of the RLCP are expected to be drawn from the current Save Baydon Lion Team:
Colin Newbould: Chairperson David Hanley: Treasurer Liz Carmichael
The business vision of the RLCP is simple:
To reinstate the Red Lion as the Baydon Lion, a homely, welcoming and traditional country pub to be run by the RLCP for the benefit of the community and the enjoyment of all.
In accordance with the investment terms agreed, RLCP will have an oversight management role of the pub but the day-to-day management of the pub will be entrusted to a suitably experienced pub manager, a quality chef, and casual service staff who will represent salaried employees of the RLCP.
The RLCP will be entrusted to administer the interests of the shareholders.
Page 4 of 22 Context and Setting
Baydon
Baydon is a small Wiltshire village twelve miles to the east of Swindon and northeast of Marlborough. The village has approximately 350 properties and just over 600 residents. The majority of these properties are located within easy walking distance of the Red Lion. In this respect, the Red Lion is at the heart of the village.
Baydon is situated midway between Junction 14 and 15 of the M4 motorway, meaning that the Red Lion is easily accessible to one of the main arterial roads in the UK. The main road through the village is often used as a scenic route.
The nearby villages of Aldbourne and Lambourn are only two and three miles away respectively.
The Red Lion Pub
Background
The Red Lion Pub has been at the heart of the Baydon community since 1715, although the pub has been known by other names in the past (e.g. The Bustard). The pub has supported visitors and the local community because of its location on an important trading route and historic Roman road.
Key Features and Amenities
The Red Lion Pub as a property consists of the following:
Separate bar and restaurant with a real fire. Standing room in the bar area for around 25 customers. 30 table covers spread between the restaurant and bar areas, with options for additional covers at busy periods both inside and outside.
Pub kitchen. Male and female toilets. Beer cellar. Outdoor seating/smoking areas to the front and eastside of the property.
Rentable accommodation on the first floor consisting of 3 large bedrooms.
Living accommodation on the second floor with kitchen and bathroom.
A small car park plus street parking.
Page 5 of 22 Red Lion Operational Assumptions
The Save Baydon Lion Team proposes to purchase the Red Lion pub as a freehold premise via a limited company enterprise, the Red Lion Community Pub Ltd. As a free house this will provide the management team with the flexibility to secure better value for money on the beers, wines, spirits, soft drinks, and food that the pub will sell.
A management team will be sought to run the daily operation of the pub. Accommodation is available for the manger to reside ‘on-site’ and this could form part of the remuneration package or a rental income for the business.
The pub has three B&B ensuite rooms and the potential of this underutilised resource can be developed once the pub has been secured.
Key qualities that the Save Baydon Lion Team will look for in appointing the management team will be:
Previous experience and a track record in running successful village pubs. Enthusiasm, drive and customer focus. Innovative ideas regarding how to attract and promote the pub towards the target audiences as highlighted. A willingness to provide services for the community through the pub coupled with strong commercial awareness. Ideally, the RLCP will seek a partner team of chef and front of house manager supported by casual staff as required.
Trade will be monitored to determine the best operational times and when demand is identified, the Baydon Lion will open to meet those demands. The quality of the staff is very important and therefore the remuneration of the staff needs to be appropriate to the expectations that will be placed upon them. A bonus scheme could be considered as appropriate and could include set performance targets in relation to sales, customer service and waste/cost control.
Page 6 of 22 Profit & Loss Projections
Although revenue takings will vary throughout the year, the surplus generated month-to-month should be sufficient to absorb any weak trading weeks and continue to provide an increasing surplus for the opening balance of the next trading year. By the end of year three, the end of year trading balance is predicting a bank balance surplus of just over £100,000. For a small business, this would represent a healthy position and one that will secure the future of the Baydon Lion as a going concern. It would also enable the board to consider spending capital on improvements and/or providing investors with a dividend.
This conservative business plan developed by the directors shows the following minimum trading levels expected and precis in the following table that presents the overall operational budget requirements for the Baydon Lion in Year 1, 2 & 3 as the first full year of operation, including staff salaries, insurances, utilities, bank charges and so on. These figures have been obtained by research and investigations into similar pub and bar costs. Please note that the cost of purchase of food and drink items is not included in the operational costs but are represented in the P&L analysis i.e. Cost of Sales.
3 Year Profit and Loss Year One Year Two Year Three Opening Bank Balance £13,425 £35,801 £64,991 Total Sales £140,592 £161,292 £181,581 Total Cost of Sales £53,470 £61,482 £69,179 Total Gross Profit £87,122 £99,810 £112,403 Total Overheads £64,745 £70,620 £77,067 Net Profit £22,376 £29,190 £35,336 Mortgage Repayments Trading Balance £22,376 £29,190 £35,336 RLCP Closing Balance £35,801 £64,991 £100,327 Note: See Profit and Loss appendix page 20 for further detail
Turnover Targets
Year 1 net profit is forecast to be £22,376 (15.9%) Year 2 net profit is forecast to be £29,190 (18.1%) Year 3 net profit is forecast to be £35,336 (19.5%)
Trade is expected to build up by approximately 12% to 15% per annum, overheads to increase with expected 2.5% inflation each year and energy and staff costs to increase by 10% per annum. The initial opening bank balance is from a £300,000 investment from share sales and after building purchase and business set up costs
Page 7 of 22 Purchase Price and Fit-Out Assumptions
Overall, it is estimated that the budget required to start trading will be in the region of £300,000 which will be raised through shareholder capital.
The share capital required to see the pub trading will be raised through private investment with the RLCP issuing shares at a value of £100 per share. It is believed that this will stimulate multiple local shareholders who may well feel that having a personal involvement would encourage them to stimulate patronage of the Red Lion.
Once a purchase has been agreed shares will be issued and the resulting share holder funds will be used for associated costs such as solicitors, valuation fees, etc.
Red Lion Community Pub Ltd has HMRC designated EIS (Enterprise Incentive Scheme) status. This gives each investor a tax rebate of 30% of their investment value. To get full advantage of this scheme the shares need to be held for three years. All dividends and profits from sale of the shares will also be exempt from tax under this scheme.
RLCP Shareholder Investment & Pre-Opening Costs
RLCP Shareholder Investment £300,000.00 Mortgage £0.00 Total DEVELOPMENT INCOME £300,000.00 DEVELOPMENT COSTS Purchase of Pub (plus associated fees) 255,000.00 Pub Renovations 25,000.00 Pre-opening costs Inc. stocking 6,575.00 Total DEVELOPMENT COSTS 286,575.00 Operating Capital Remaining £13,425
Staffing The main cost related to the running of the pub will be staff costs. As highlighted previously, it is important that the remuneration of the staff is commensurate with the expectations that will be placed upon them.
Staffing levels must also be sufficient to ensure that the pub can be run successfully at both quieter and busy periods. On occasion, it is anticipated that additional temporary staff will be required to either support the main staff during particularly busy times, or as cover for annual leave and other absences. The RLCP will work with the management team to plan contingencies for such occasions so that the business will not face additional financial burden.
Page 8 of 22 Members of the community have indicated that, on occasion, they would be willing to volunteer their time as a means of ensuring that the pub’s operation is sustainable.
Drinks Strategy
As a free house the management team will have the flexibility to purchase a range of alcoholic drinks that balances quality with price to maximise the gross profit that can be achieved through each unit sold. It will also allow the pub’s management team to bring in guest drinks, such as the locally produced Ramsbury and West Berkshire Micro-brewery ales, to help stimulate interest in re-visiting the pub by ale enthusiasts.
There may be an opportunity to take up the offer of installing a micro-brewery on the premises which would have the dual advantage of increasing margins on beer sales and create a marketing unique selling point to increase trade.
The pricing strategy for the drinks will largely be influenced by the costs of the wholesale price plus duty and VAT. For the business plan, the RLCP has assumed price strategy that will be employed is a gross margin of 65% for wet sales and bar snacks will have a margin of 50%. These margins are consistent with other pubs in terms of both wet and dry sales.
Food Strategy
A separate lunch time and evening menu will be created, offering good quality food at affordable prices.
The lunchtime menu will reflect the “passing trade” nature of much of the business that will be received, with the emphasis of healthy and nutritious quick food such as soup, salads, and sandwiches. Special offers will be developed to include drinks and extras such as chips and/or salads with the sandwiches. The main menu will also be available.
The evening menu will have a combination of “Best of British” cuisine consisting of fish and chips, pies, bangers and mash, and stews along with pub favourites such as steaks, mixed grills, burgers, and curries. There will also be a regularly changing list of ‘specials’; all meals will be designed and priced to create a gross margin of 60%.
Vegetarian options will also be provided. Specific dietary requirements and allergy concerns will be catered for. On Sunday, the main meal of the day will be a traditional roast.
Page 9 of 22 An appetiser/starter and dessert menu will accompany the main meals, with the target being to encourage at least 2-courses per restaurant customer.
At 26 covers, the RLCP estimates that the overall capacity per sitting will be as follows:
Lunchtime (12:00 - 15:00) = 52 meals, based on each diner staying approximately 60 minutes Evening meals (18:00 - 22:00) = 52 meals, based on each diner staying approximately 1-hour and a half
Assuming a 6-day operating period, this equates to an overall diner capacity of over six hundred indoor covers available.
Even at busy periods, these capacities are unlikely to be maximised, however this at least demonstrates that the Baydon Lion has good turnover potential for food each day.
The menu will be changed seasonally, with seasonal and locally sourced produce to be utilised wherever possible. A series of Baydon Lion signature dishes are to be developed. The RLCP would look to include a signature fish and vegetarian dish. Building a series of good quality vegetarian and healthy options would be beneficial to ensure repeat business from the growing health conscious markets.
Additionally, the availability of a take away menu is being considered.
The pricing strategy for food will match the overall philosophy of providing good quality but affordable meals using fresh ingredients. Local produce will be utilised where possible, however it is also envisaged that a contract will be established with one of the main catering suppliers. For the business plan the following price strategy will be employed on a per meal basis
Bed and Breakfast As already outlined the pub has three well-proportioned rooms to the first floor. These are all en-suite bedrooms that can be rented on a bed and breakfast basis. The B&B accommodation revenue stream will contribute £8,684 based upon a very modest ARR £60.00 and an average occupancy of 10%. Typically, within this area the average occupancy is closer to 60% based on year-round figures. The pricing structure for the rooms will need to be assessed against local competition as they could be considered undervalued.
Page 10 of 22 There is currently no adequate marketing strategy and these are not advertised on late rooms / Ebookers etc. With an improved marketing plan and differentiation between weekday and weekend improved occupancy and margins are potentially available.
Accommodation Assumptions for three rooms
Average Room Rate £60
Initial Occupancy Rate 10%
Monthly Revenue £724
Annual Revenue £8,684
Full Occupancy Weekly Revenue £1,260
Full Occupancy Monthly Revenue £5,475
Other Sources of Income
As a traditional style pub, the RLCP does not envisage that the pub will be able to secure additional income through the provision of a pool table, gaming machines, or live entertainment apart from on special occasions for the community. Supporting quiz nights, cribbage and local association meeting points for the Baydon fireworks, golf and cycling is essential and theme nights can also be reviewed e.g. ladies’ night, gentlemens’ evenings, curry nights and other such activities.
There is the potential to grow the coffee /cafe culture and identify with the target demographics within the village.
There is currently no adequate baby changing facilities, minor alteration to the toilets could help improve the desire for parents to use these facilities.
Controlling Costs
Generating revenue forms only part of the success of a business of this type. Controlling the costs of the operation is the other key element.
Controlling waste will also be crucial in ensuring that the value of expenses on food and beverages is maximised. There is always an element of wastage related to barrel and keg ales and lagers, generated through putting on a new barrel, pouring spillage and regular line cleaning. This will need to be built into the P&L analysis, with the estimation that an average of 5-7 pints per keg/barrel would be lost through these issues.
Page 11 of 22 Food wastage will also be controlled through good meal design and portion control. The RLCP will require the management team to abide by the most stringent food hygiene and safety measures at all times.
Where costs involve suppliers, the RLCP will work to ensure that the Baydon Lion receives competitive rates on all its purchases. This could involve working with other businesses and even local residents in the area to seek economies of scale on deliveries of fuel and food for example. The RLCP will also utilise the skills and experience of the community to help undertake certain ancillary services - e.g. painting and decorating, equipment installation, through to book keeping and accountancy if required - as a means of reducing these types of costs. Both sales and cost control will be a vital part of the responsibilities of the Baydon Lion management team.
Branding
The pub to be renamed Baydon Lion, this is to reemphasize the community feel of the pub being at the heart of the village and to strengthen awareness of the location of the pub. Using local sign writers or artist the pub will look to rebrand to have a softer feel from the outside and replace the Lie in sign to reflect the new branding. Strengthening a message of a pub with room to stay.
Marketing Competition
There is no other pub in the village. There are two other pubs in the village of Aldbourne, 2 miles away and the nearest restaurant is the Hare at Lambourn. Therefore, there is no direct competition to the Red Lion nearby. Nevertheless, there are numerous pubs in the surrounding villages, whilst they are some distance away, they are competitors for the tourist market. Visitors to the area looking for a country pub to walk to or for a meal out will consider options across a wide area.
The plan is to market the Baydon Lion as a homely, traditional English pub, which fully meets tourists’ and day trippers’ idea of a country pub. This involves good quality pub food, sourced from local suppliers, good quality beers, again brewed locally, open fires, a friendly atmosphere and traditional pub entertainment. The aim is to attract visitors and to meet the needs of the community for a meeting place and venue for events. Whilst the villagers will return to the pub quickly once it is open, it will take time to build up the tourist and visitor usage. Reputation will spread most effectively by word of mouth and must be built on good quality provision and service. Nevertheless, regular marketing is vital to supplement this.
Page 12 of 22 The marketing of the business will be a matter for both the board and the management team. The company will be looking to appoint a manager who will work in partnership with them in marketing the Red Lion and who will pursue the following marketing strategy.
Objectives Increase general awareness and publicity of Baydon Lion to: 1) Increase bar sales. 2) Increase food sales. 3) Increase occupancy on B&B. 4) Improve overall footfall.
Target Markets
Local community Surrounding community Dog Walkers & Ramblers Cyclists (see appendix) Parents of children from St Nicholas School Home workers Local groups (see appendix) Tourist and transient travellers Fishing & Shooting Groups (see appendix)
Marketing communications (MARCOM)
The following activities will be arranged with defined timescales working with seasonal demands:
Purchase of website domain. Opening night for the re-launch of the pub. Communicate opening hours to serve the needs of the community. Food Menu to be visible on website and specials board changing each season. Listing on Dog Friendly Pub sites (see appendix). Food Reviews in local press.
Page 13 of 22 Cyclists group to be contacted and routes planned via cyclestreets.net to establish the Baydon Lion Inn as a suitable staging point for refuelling. Signage for coffee & cake. Quality Branded Coffee for signage. B&B to be listed on accommodation website (see appendix). Loyalty Scheme, business card with stamps. Extensive range of spirits wines and soft drinks to offer more choice. Advertising via social media and website new ranges that are implemented to include a range of local ales. Maps of circular walks within Baydon & Ridgeway trail using the pub as a base downloadable on the website. 8 local groups in Baydon. Contact all to work with how they can use the pub (see appendix). Monthly Events Calendar & National Weeks see appendix. Press Release/Media Alert to be issued for each event that is organized. Food & Beverage Events to coincide with national weeks/events.
Each market will be targeted through marketing initiatives such as:
Developing a new website highlighting the drinks and food menus, and contact details. Pursuing Brown and White Tourism Signposting with the Wiltshire District Council. Establishing loyalty programme for both passing trade and local customers. Local advertising through newspaper publications. Regular special promotions and events programme. Social Media including Twitter, Facebook and Instagram.
The RLCP will monitor the effectiveness of each marketing channel to ensure that the marketing budget is being utilised effectively.
Page 14 of 22 SWOT Analysis STRENGTHS Excellent location at the centre of the village and close to towns (Marlborough, Hungerford Swindon & Newbury). Close to the famous landmarks Avebury stone circle, Uffington White Horse, Ashdown House, Waylands Smithy. Close to River Lambourn famous for fly fishing. A base of regular customers. A local population size and demographic. The commitment of the wide membership base to use what will be their business and who will encourage their friends and family to use the pub. The pub has three attractive letting rooms for bed and breakfast guests which have en-suite shower room and toilet. The business will own the freehold and will not be tied to any brewery and is therefore free to negotiate the best deals. The company will appoint an experienced licensee to manage the day to day running of the pub.
WEAKNESSES It is not located in a well-known village, and a little off the main tourist routes. There is a limited pub car park. There is limited outside space and the beer garden area is small and confined and lacks features.
OPPORTUNITIES To build a new Brand and Reputation based on community value. To develop new customer bases including walkers (with a “Walks from the Red Lion” booklet), cyclists, people in search of locally sourced, good quality food, and locally produced beers. Plan to build a micro-brewery. The business plans to developed links with local brewers further to enhance facilities and skills. The proposed programme of events will attract new and old customers to use the pub
THREATS Unable to generate sufficient interest from potential investors. Once business is established several shareholders may withdraw their shares at the same time. Despite all the work and effort, the continued economic downturn may lead to insufficient use of the pub and the business proves not to be viable. Inability to purchase the premises at the advised independent valuation.
Page 15 of 22 Addressing the Weaknesses and Threats
Attracting trade The village of Baydon has a population of around 560 people. Once the pub is owned by the village (and we expect up to 110 members to be residents), the commitment to use the pub and to encourage family and friends to use it will be considerable. We estimate that in an average week up to 90 of these adult residents will visit the premises and of these 40 will visit on more than one occasion. The pub will attract visitors on holiday in the area and people from nearby towns by building up its reputation as a traditional, friendly country pub selling good quality food and real ale.
Lack of car parking space There is room for up to 6 cars to the side of the pub and a further area at the bottom of the car park can be changed to allow more cars. Parking for additional cars is available along Aldbourne Road. There is therefore ample car parking for general use and, in addition to this, the business will deliberately set out to attract cyclists and walkers to use the pub and most of the villagers can walk to it.
Limited external space There is space for a few tables on the paved yard at the front of the pub and we will ensure these are updated to look attractive and inviting for customers. The garden although small would be become a feature garden and look attractive to drive use.
Inability to attract sufficient interest from investors If the proposed enterprise does not attract the anticipated investment, then the proposed purchase will not go ahead. The cheques will be collected and banked in a client account and no share certificates will be issued. If, at the deadline that we set, insufficient shares have been purchased, the share issue will the halted and all those who have invested will have their investment returned to them in full.
The business is not viable Should it be impossible to operate the Baydon Lion as a viable business, shareholders should be aware that their investment is in the freehold of the premises.
Page 16 of 22 Conclusion
The Baydon Lion Pub has a strong connection to the welfare of the Baydon community. The threat of losing this amenity has driven the community to come together to oppose its closure and potential change of use proposal by a prospective building developer. This in turn has led to the formation of the RLCP as a company that can provide a realistic and achievable business solution for the benefit of the community and its investors.
Through this business plan, the Save Baydon Lion Team has sought to re-affirm that the pub has a range of markets which, collectively, will provide the pub with sufficient revenue to meet its operational costs. Drawing upon previous experience, it is estimated that around £3,500 revenue per week (excluding duty and tax) will be required to generate a good profit. Thus, this has been the benchmark.
With the potential for a 30% rebate of the value in investment from HMRC due to the EIS scheme application an investment in the RCLP looks very attractive.
In addition, the RLCP, through the initial Save Baydon Lion campaign, will re- energise the local community. Through a concerted effort to develop the right product mix and pub environment, the RLCP has great confidence that the community will once more come to view and utilise the pub as their village ‘hub’.
Make no mistake, this is the FINAL opportunity for you to save your Baydon Lion from closure, forever.
Your investment will ensure Baydon Lion again becomes the hub of Baydon community’s values and spirit, for current residents and generations to come. It has been there for us since 1715 now we need to be there for it. Don’t let your Baydon Lion down.
The RLCP hopes to secure commitment of £300,000 from local shareholders.
Contact Save Baydon Lion Team
Want to invest? Download a share application here Questions? Contact us: [email protected] Website: www.savebaydonlion.uk
Page 17 of 22 Marketing Appendix
Local Cycling Clubs Baydon Village Groups Baydon Flyers Baydon Allotment Chippenham Wheelers Association Cycle Devizes Baydon Bikers Club Swindon Road Club Baydon Flyers Bicycle Club Trowbridge Cycle Club Baydon Jogging Group Newbury Road Club Baydon Social Group Buckled Wheel Cycle Clubs Baydon Table Tennis Club Corallian CC Friends of Baydon School Cycling Pewsey Defence Academy Cycling Club MB Swindon Recycles RCC Swindon Wheelers Banjo Cycles
Website to be listed to offer accommodation are:
Fishing Breaks
fishingbreaks.co.uk
famousfishing.co.uk
nickhartflyfishing.com
goflyfishinguk.com
Shooting Breaks barburyshootingschool.com lainsshootingschool.co.uk www.gunsonpegs.com rbss.co.uk www.pennsport.co.uk
Accommodation Websites pub-rooms.co.uk stayinapub.co.uk friendly-places.com
tripadvisor.co.uk
booking.com
airbnb.co.uk toprooms.com bedandbreakfast-directory.co.uk
Page 18 of 22 Competitor Pricing
B&B No of Rooms Rate The Crown Aldbourne 4 £60 - £85 The Crown & Anchor, Ramsbury 2 From £75.00 The Bell, Ramsbury 9 £110 - £150.00 Royal Oak 2 £45 - £110 Rose & Crown Inn, Ashbury 8 £45-£110 Queen's Arms 8 £75 - £130 The Lamb Inn 7 £50.00 Dundas Arms, Kintbury 8 £90 - £155.00
National Events
Date National Day Potential Event Monthly N/A Quiz Night Monthly N/A Live Music Coffee themed Dishes 1st October International Coffee Special Coffee menu
Cakes to be offered with coffee throughout the day 2-8th October National Cake Week All desserts to feature cake 31st October Halloween 5th November Guy Fawkes Night 30th November St Andrew's Day 14th February Valentines 30TH March - 2nd April Easter
Page 19 of 22 Profit and Loss Appendix
Year 1: 12 MONTHS PROFIT AND LOSS FORECAST SALES OPERATING COSTS
Wet Sales £52,165 37.1% Staff Wages (incl. NI) £52,545
Food Sales £78,247 55.7% Mortgage Interest £0
Accommodation £6,919 4.9% Insurance £2,000
Other £3,260 2.3% National Non-Domestic Rates £0
Total Sales £140,592 100.0% Heating, Lighting, Utilities £4,200
COST OF SALES Marketing £400
Drinks Purchases £18,258 Equipment Maintenance £300
Food Purchases £31,299 Licence £0
Accommodation £2,283 Premises Repairs £600
Other £1,630 Cleaning Materials £300
Total Purchases £53,470 Window Cleaning £300
GROSS PROFIT Pest Control £400
Drinks £33,907 65.0% Bank Charges £600
Food £46,948 60.0% Motor Costs £300
Accommodation £4,636 67.0% Accounting Costs £1,000
Other £1,630 50.0% Administration £600
Total Gross Profit £87,122 62.0% Miscellaneous £1,200
Total Overheads 64,745 Total Sales £140,592
Total Costs £118,216
B/E Weekly Sales Target £2,210
Total Net Profit £22,376 15.9% Weekly Sales Expected £2,704
Page 20 of 22 Year 2: 12 MONTHS PROFIT AND LOSS FORECAST SALES OPERATING COSTS
Wet Sales £59,757 37.0% Staff Wages (incl. NI) £57,800
Food Sales £89,636 55.6% Mortgage Interest £0
Accommodation £8,164 5.1% Insurance £2,050
Other £3,735 2.3% National Non-Domestic Rates £0
Total Sales £161,292 100.0% Heating, Lighting, Utilities £4,620
COST OF SALES Marketing £410
Drinks Purchases £20,915 Equipment Maintenance £308
Food Purchases £35,854 Licence £0
Accommodation £2,845 Premises Repairs £615
Other £1,867 Cleaning Materials £308
Total Purchases £61,482 Window Cleaning £308
GROSS PROFIT Pest Control £410
Drinks £38,842 65.0% Bank Charges £615
Food £53,782 60.0% Motor Costs £308
Accommodation £5,319 65.1% Accounting Costs £1,025
Other £1,867 50.0% Administration £615
Total Gross Profit £99,810 61.9% Miscellaneous £1,230
Total Overheads 70,620 Total Sales £161,292
Total Costs £132,102 B/E Weekly Sales Target £2,414
Total Net Profit £29,190 18.1% Weekly Sales Expected £3,102
Page 21 of 22 Year 3: 12 MONTHS PROFIT AND LOSS FORECAST SALES OPERATING COSTS
Wet Sales £66,669 36.7% Staff Wages (incl. NI) £63,580
Food Sales £100,004 55.1% Mortgage Interest £0
Accommodation £10,741 5.9% Insurance £2,101
Other £4,167 2.3% National Non-Domestic Rates £0
Total Sales £181,581 100.0% Heating, Lighting, Utilities £5,082
COST OF SALES Marketing £420
Drinks Purchases £23,334 Equipment Maintenance £315
Food Purchases £40,002 Licence £0
Accommodation £3,759 Premises Repairs £630
Other £2,083 Cleaning Materials £315
Total Purchases £69,179 Window Cleaning £315
GROSS PROFIT Pest Control £420
Drinks £43,335 65.0% Bank Charges £630
Food £60,002 60.0% Motor Costs £315
Accommodation £6,982 65.0% Accounting Costs £1,051
Other £2,083 50.0% Administration £630
Total Gross Profit £112,403 61.9% Miscellaneous £1,261
£181,581 Total Overheads 77,067 Total Sales
£146,246 Total Costs
B/E Weekly Sales Target £2,634
19.5% Weekly Sales Expected Total Net Profit £35,336 £3,492
National Non-Domestic Rates - RLCP would seek a full rates discount from the Wiltshire District Council on the basis that the Red Lion would be the last public amenity in the village with a rateable value of less than £11,500.
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